# Healey is expected to shield low-income pensioners from income tax – but how will it work?

- URL: https://talkfuse.com/story/healey-is-expected-to-shield-low-income-pensioners-from-income-tax-but-how-will-it-work/
- Published: 2026-10-26T13:25:03+00:00
- Updated: 2026-10-26T14:07:34+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/money/2026/oct/26/healey-pensioners-low-income-tax-budget-how-will-it-work
- Topics: Business, UK, World

## Key points

- A special tax allowance may protect pensioners reliant only on the state pension.
- The full new state pension is due to reach £13,036 in 2027.
- Experts warn the proposed rules could create costly cliff edges.

## Summary

The government is expected to give low-income pensioners a higher personal tax allowance so people whose only income is the state pension do not pay income tax on it. The change is intended to protect them as the full new state pension is set to rise above the standard tax-free allowance.

From April 2027, the full new state pension is forecast to be £13,036 a year, while the standard personal allowance remains £12,570. A reported proposal would align a special allowance for eligible pensioners with the full new state pension and increase it as the pension rises. Former pensions minister Steve Webb warns this could become costly and create a “cliff edge” for people with even a small amount of other income; how people on the older state pension would be covered is also unclear.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.